'IMF loan a precaution, not bailout'

Prime Minister’s principal secretary Ahmad Kaikaus on Wednesday said the current foreign exchange reserve of the country can meet all types of import expenditures for more than five months, reports UNB.

“We have import expenditure for more than five months in our reserve where as it is said that having more than three months of import expenditure is the symbol of strong economy. We do not have any risk,” he said.

The principal secretary said this while briefing reporters at his office on some misleading news in news papers and other media.

He mentioned that as per the prediction from various organisations like IMF, Word Bank, ADB and others the world is likely to have an economic turmoil in the coming days.

“We have given proposal to the IMF on how could we get possible fund from them as part of taking precautionary measures,” he said.

He said that he has strong objection to using ‘bail out’ words (in some media reports). 

“Why bail out, is the country in a deep crisis so that we have to make the bail out?,” he asked.

He mentioned that using the terms like Bail Out is hitting country’s dignity as it is not in such kind of situation.

Kaikaus requested the media to check the matters with the IMF mission in Dhaka whether Bangladesh has fallen into a deep economic crisis like Pakistan or Sri Lanka.

“This was a regular discussion between the finance ministry and the IMF,” he said about the recent move of the government to get funds from the IMF. 

He stated various types of fund assistance from the IMF by various governments of Bangladesh in 1993, 2003, 2012 and 2020.

“We are taking funds from IMF, ADB and World Bank on regular basis,” he said.

But he mentioned that Bangladesh is getting budgetary financing now, not the project financing, from them as they have trust on the country as it could utilise the fund more efficiently.

“This time we sought budget assistance, this is for meeting the deficit in balance of payment, not bail out. It is basically the money that we need as foreign currency to spend for our development activities,” he said.

Talking about the power situation, he said that the government is also concerned like others about the power so that it does not become a crisis in future. 

“Thats why we are saving our power now for the coming days,” he said.

Regarding the misleading news of Indian Adani Group and Meghna Ghat power plant, he said it is just baseless.

“…why  are you making horror stories. Tell the truth,” he requested the media.

He mentioned that these types of news will be harmful for he country and its possible investments from abroad.

The principal secretary said that the recent move by the government to save power through area-based load shedding has been effective and there is no need to increase it.

“We are saving 2000-3000 MW electricity and we are under our target,” he said.

Responding to a question regarding import of fuel oil from Russia, he said, if other countries can import, why can't we. 

He also mentioned that the government is exploring new pockets for cheap fuel oil import.